From beaches to bush, the property market in Adelaide continues to show no signs of slowing down, breaking records month-on-month throughout 2021.
On the 12 months to November 30, CoreLogic data notes Adelaide property prices are up 21.4%, pipped out of the top four capitals only by Hobart (27.7%), Sydney (25.8%), Brisbane (25.1%) and Canberra (24.5%).
CoreLogic’s Head of Research Eliza Owen said the quarterly growth in dwelling values across Adelaide reached 6.5%, the second highest of the capital city dwelling markets across the country and its highest quarterly growth rate for the past 20 years.
“The Adelaide housing market has seen sustained, high levels of quarterly growth in part attributable to persistently low levels of housing supply and relative affordability,” Ms Owen said.
“Adelaide’s median dwelling value of $558,179 makes it the third most affordable city behind Perth and Darwin.”
Peter Koulizos, Master of Property Program Director at The University of Adelaide and PIPA Chair, said Adelaide has seen growth of over 20% in the last twelve months with majority of the activity coming from gentrification in the inner-western suburbs.
“This area of inner-western suburbs I call the ‘Turquoise Coast’ - between Christies Beach and Aldinga Beach,” Mr Koulizos told Savings.com.au.
“People are buying a lot of lifestyle properties along the beach with a significant portion of activity coming from interstate.
“These interstate buyers are two groups: those that are moving to Adelaide or relocating to Adelaide from Sydney of Melbourne and eastern state investors.”
Tipped to continue to make waves in the property market in 2022 due to its sheer affordability, Adelaide suburbs tipped to watch out for are:
Torrensville
Situated 3km to the west of Adelaide CBD and in close proximity to the popular Henley Beach Road, Mr Koulizos believes Torrensville will continue to grow throughout 2022.
“The highest concentration of jobs will still be in the CBD, so there will still be a lot of demand for living close to the CBD,” Mr Koulizos said.
“As international students come back, there will also be a lot of demand for property, be that in the CBD or close to the CBD.”
Within their 2021/22 Investor Special Report, BuyersBuyers said the strength of the market will vary across the state.
“Houses in areas close to the Adelaide Central Business District are likely to perform better, in comparison to softer markets, such as the Barossa - Yorke - Mid North area, over the long term,” BuyersBuyers said.
Torrensville has a current median house price of $757,500 based on PropTrack data.
Units in Torrensville are currently priced at a median of $322,000 based on PropTrack data.
Thebarton
Lying next door to the east of Torrensville is Thebarton, a city-fringe suburb home to a plethora of local shops, cafes and pubs.
A variety of transport options including trams and buses servicing Thebarton makes it easy for residents to access Adelaide CBD and surrounding venues including Adelaide Oval and Adelaide Zoo.
With a median house price of $695,000 based on PropTrack data, Mr Koulizos says “Thebarton like its neighbour Torrensville, will continue to grow across 2022”.
Underdale
To the west of Torrensville, lies Underdale with a median house price of $781,500 based on PropTrack data.
“Underdale, which is next door to Torrensville will continue to show growth in 2022,” Mr Koulizos said.
Recent upgrades to Underdale High School including a new creative arts centre boasting art, music and drama areas and a performance space for 150 people will pique the interest of families, forming part of the State Government’s $1.3 billion investment in capital infrastructure for public schools.
Unit prices in Underdale currently sit at a median of $315,000 based on PropTrack data.
Hackham
Located to the east of Christies Beach forming apart of the ‘Turquoise Coast’, Hackham is situated less than 45 minutes to Adelaide CBD and 15 minutes to both the beach and wine region of McLaren Vale.
Hackham is the second suburb identified by Well Home Loans Green Shoots Report set to take off in 2022, with house prices set to accelerate.
Over the three months to August 2021, days on market spent by Hackham property declined from 39 to 35.
From a reported median house price in August of $370,800, Hackham has a current median house price of $357,650 based on PropTrack data.
Unit price for Hackham sits at $270,000 based on PropTrack data.
Glenelg
Drawn to the wide horizon over Gulf St Vincent, Glenelg attracts the young and the young-at-heart. With the ocean at your doorstep, a primary drawcard for investors to Glenelg is the unit market.
Well Home Loans' Green Shoots Report published in August highlighted the growing appetite for Glenelg property inventory with days on market declining from 51 to 43 days.
PropTrack data notes the median unit price for Glenelg is $550,000 while the median house price is $1,227,000.
Welland
North of Torrensville, Thebarton and Underdale, Welland is Mr Koulizos’s final pick for 2022.
“Welland, much like its neighbours, will continue to show growth moving into 2022,” Mr Koulizos said.
A mere 5km from Adelaide CBD and 15 minutes from nearby Grange Beach, Welland is fast becoming an area for young families and executives given its amenities and close proximity to the city.
Welland lies in close proximity to the new city-fringe Bowden development opening in 2022 with a new microbrewery, restaurant, hairdresser and licensed event space, as well as The University of Adelaide and new Royal Adelaide Hospital.
Welland has a current median house price of $710,000 based on PropTrack data.
Millswood
Set in the Inner-South fringe, Katherine Skinner from National Property Buyers says she has seen exceptional performance within Millswood.
“Sitting at approximately 40% growth this year so far, Millswood continues to be a highly sought after location for families looking to secure a character style home on sizeable blocks,” Ms Skinner told Savings.com.au.
Millswood is a large suburb, situated to the south of Adelaide and immediately adjacent to the south-west of Hyde Park. Filled with wide, leafy streets, Millswood has access to both the upmarket shopping strip of King William Road at Hyde Park and also the good selection of shops and services along Goodwood Road.
Millswood has a current median house price of $1,351,000 based on PropTrack data.
Adelaide Hills Region
Extending from the South Para Reservoir in the north to the Mount Bold Reservoir in the south, Ms Skinner notes the Adelaide Hills region has seen a huge influx this past year of people relocating to Adelaide from the Eastern States.
“These people are chasing the lifestyle these areas can provide, in terms of spacious living, enjoying nature and good food, coffee and wine,” Ms Skinner said.
The Adelaide Hills comprises of suburbs across mid-level and premium price points, including Nairne, Bridgewater, Stirling, Aldgate, Upper Sturt and Strathalbyn just to name a few.
Prices range across suburbs throughout the region with two examples being the median house price for Nairne currently at $459,000 and Bridgewater at $679,500 based on PropTrack data.
Based on these prices, Ms Skinner says they are seeing interstate investors drive competition within the first home buyer market where price points were sitting below $500,000.
“This influx has seen it become extremely difficult for home buyers and investors to secure a family size home on a decent size block within that budget due to huge capital growth through these family and owner occupier dense areas,” she said.
Image by Scancode Productions via Unsplash.
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